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save up or pay off CC

i have about $60/month of extra money (regular stuff is paid for.. but if i need more food, gas, etc- it comes from this money). i have a CC that i've been trying to pay off for 3 years now. right now, its at $300. min payments is only $10

should the full $60 go to the CC- leaving me with no savings, but if i do that, it'll be paid off in 5 months?

put $50 in savings, and $10 for the CC- it'll be paid off in 30 months- 1500 in savings in 30 months

or do half/half- 30 in savings, 30 for CC-- paid off in 10 months, leaving me with $300 in savings in 10 months

i want to do option one (pay off in 5 months) but it leaves me with NO savings whatsoever.. but i do have family to fall back on for emergency $ if needed.

Answer Question
 
Anonymous

Asked by Anonymous at 2:18 PM on Jun. 10, 2010 in Money & Work

Answers (11)
  • Have an emergency fund in place, and then pay off the credit card as quickly as possible.
    MomToBeISaMom

    Answer by MomToBeISaMom at 2:20 PM on Jun. 10, 2010

  • I'd pay at least $30 on the credit card and save what's left. If your savings grows beyond what you reasonably might need, then put the extra on the CC.
    Anonymous

    Answer by Anonymous at 2:21 PM on Jun. 10, 2010

  • if you have a support system and you have normally been able to live without the extra $60 a month, i would defiantely just pay it all to the credit card.

    you could also pay it all one month. then next month if there were some extra things that came up and you couldnt do the full 60 to the credit card, then just do the 10. I would try to pay as much as you can to the credit card if you are able to do so.
    aly38914290

    Answer by aly38914290 at 2:21 PM on Jun. 10, 2010

  • the savings wouldnt be in the bank- i guess i should mention that. at least not like a savings bond or anything- just a regular checking account so i can get to the money if i truly need it.. but its out of reach if i just want to waste it on something stupid
    Anonymous

    Answer by Anonymous at 2:28 PM on Jun. 10, 2010

  • I would pay the cc off. Then save it. Loosing all that money to intetrest
    2BlondeBabies

    Answer by 2BlondeBabies at 2:41 PM on Jun. 10, 2010

  • If the interest on the credit card is higher than the interest on the savings account, pay down the credit card.
    rkoloms

    Answer by rkoloms at 2:51 PM on Jun. 10, 2010

  • Pay off the credit card. You are paying more in interest then you would make if you saved it. It should take you about 5 months to pay it off, then start putting that money in savings.
    nsrush83

    Answer by nsrush83 at 3:00 PM on Jun. 10, 2010

  • You don't share what your fall back EM fund is. If it's at least $1,000 then I say apply that $60 every month to your CC payment and wipe it out! If all this time you have been paying the min. payment on a $300 bill then it might NEVER go away (Or it may take several more YEARS).

    1. Check what how much interest is added to your account each month. Often CC companies set the min. payment at or below the interest. If that is the case paying the min. payment will NEVER decrease or wipe out the bill.

    2. You'll want to apply as much money as you can to the CC. bill. However it's could to at least double the interest applied to that account each month. That way it will at least start going down and be wiped out!

    Getting out of DEBT is always a good thing!
    SAHMinIL2

    Answer by SAHMinIL2 at 3:02 PM on Jun. 10, 2010

  • credit card first, then save.

    look at dave ramsey's site. he's awesome!
    ourbabykins

    Answer by ourbabykins at 3:10 PM on Jun. 10, 2010

  • WAIT.
    1st - Save 1,000. Leave it be for emergencies.
    THEN
    2nd - Pay off credit card
    and
    3rd - Money into savings for 3-6 months living expenses.
    ourbabykins

    Answer by ourbabykins at 3:11 PM on Jun. 10, 2010

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